lifeonabudgetsblog

[lifeonabudgetsblog]

Step 2. Payoff all debt using the snowball method. Dave Ramsey's baby step number 2 states that you pay off all consumer debt by putting as much money as you can towards the lowest total debt you owe. This step does not include paying off your mortgage. This method is said to keep you motivated as you get to payoff entire debts in full quicker which can provide a sense of accomplishment. While that method is a great method, our financial advisor suggests a different method. He suggests you payoff your highest interest rate debt first followed by your next highest interest rate debt. This method made more sense to me so we decided to use this method. When we looked at the amount of interest we were accruing on our credit cards it was sickening. Currently our credit card with the highest APR is our Lowe's credit card at 26.99%. 😳 It is also our lowest balance debt so paying it off first falls in line with both methods. Dave Ramsey also suggests you save little to no money during this timeframe. While I completely get the logic behind this rule, there is just no way we could not save a dime during our payoff period. As a family of five our lives can't stop while we get our debt paid off. This is why I sat down and determined how much we could safely put towards debt at this time. While we are not completely sacrificing everything, we are making way more intelligent financial decisions during this time and attemtpting to only spend what is budgeted and necessary. Once I figured out how much we were putting towards our debt, I determined how long it would take for us to reach payoff. By October 2020 we will be credit card debt free and will begin to focus on the next debts we hold, my student loans and my car payment. Step 2 is the largest step for most people and takes the longest to accomplish. I am eager to reach out goal in October and begin to build our new plan towards paying off our remaining consumer debts. At some point I will share with you the spreadsheet I use to visualize and track out credit debt payoff. #financialfreedom #daveramsey #creditcarddebtfree #financialjourney #everyonesisdifferent #budgets #stayingontrack #babystep2 https://www.instagram.com/p/B3b8Hn_gKAh/?igshid=3261k3vialw8

[lifeonabudgetsblog]

Dave Ramsey's 1st baby step...have $1000 in an emergency fund. Do we have this? . . Honestly. No. We don't. . . Why? . . There are different views on this first step. Some financial advisors do not beleive you should have any extra money sitting in an account with an extremely low return rate while you are attempting to payoff debt. They believe every extra cent should go towards paying off the debt. Others say that you absolutely should have money put aside in case something comes up that requires spending money that you don't have. Many financial advisors suggest more like $2500 in the emergency account while paying off debt. . . When we started this journey we had $2500 in our savings account, but our old ways got the best of us and when we have money sitting around, we are prone to try to justify things we need to spend it on...like the beginnings of a backyard makeover *eye roll*. We also found that we were more likely to overspend on our budget because we had "cushion". . . We decided to take a harder look at our budget and build the cushion into the budget with a misc. amount per paycheck as well as a short term spend account. This way, when we have small purchases we don't account for or overspend for the pay period, we use this built in cushion instead of what should be our emergency fund. Yes it takes away from the money we can put towards credit card debt, but ultimately it is what is working for our family and our financial goals. . . We have also decided to continually build our emergency fund during our credit repayment because we feel that the security of this fund for our family is ultimately more important than shortening the time of credit debt payoff. . . If we stick to the plan, we will be credit debt free come October 2020. Tomorrow, I will post about this plan along with baby step number 2. #financialfreedom #daveramsey #familyaffectsdecisions #buildingourfinancialfuture #financialgoals #reachingfinancialgoals #creatingyourownsteps #guidelines #budgets https://www.instagram.com/p/B3YRPM8AzAh/?igshid=7ykbeqxmv4hi

[lifeonabudgetsblog]

This week I'll go over each baby step, provide you our plan and post on how we make these rules work for us. 😁💸💲 #financialfreedom #budgeting #babysteps #daveramsey #financialjourney #cutbacks #goals #accomplishment #priorities #creditdebtpayoff https://www.instagram.com/p/B3Vpkj2g20l/?igshid=c4tfqd3hx6z1

[lifeonabudgetsblog]

NEW POST!!!!! What does financial freedom mean for my family? 💸💲 #linkinbio #tumblr #newblogpost #financialfreedom #budgets #creditpayoff #ourjourney #goals #financiallessons https://www.instagram.com/p/B3BJQj2ABhn/?igshid=v86vv35mzfu3

[lifeonabudgetsblog]

What is financial freedom???

Technically financial freedom holds the following definition, 

“being free, financially, means you can maintain your desired lifestyle without a regular paycheck. In other words, financial freedom is the 21st-century definition of retirement.”

While, I would love to get to that point, the above definition is not how I define financial freedom for my family at this point in our lives. There is an entire community out there reaching for financial freedom and there are many on a strict path. While my family plans to make sacrifices and cutbacks to reach our goals, I do not plan to eliminate all spending during our journey. I do plan to make sure we stay conscious of how much we are spending and what we are spending on.

To us, financial freedom means reaching a point where we hold zero consumer debt. Reaching this point will allow us the flexibility to be able to fund things we want using cash and the relief of knowing we are no longer living “paycheck to paycheck”. For us, financial freedom = peace of mind and security.

This year, our journey to our financial freedom is taking us towards credit card debt payoff. On October 31st of 2020 we will officially be credit debt free. This is an extremely important part of our journey and will teach us the discipline and skills we will need to continue to pay off our consumer debts after the credit cards. 

Our overall plan to reach freedom involves Dave Ramsey’s baby steps and in my next post I will go into a little more detail on how we have taken the steps and made them work for our journey. 

Of course, I hope this journey gets us to where we want to be on our chosen timeline, but most of all, I hope we learn lessons that will allow us to make effective financial decisions for our family and our future. 

[lifeonabudgetsblog]

Don't forget about your rebates! Just purchased contact lenses for $90.00 but there is a $50.00 rebate available. It took me all of 10 minutes to send in the paperwork and now I just bought a year's supply of contacts for $30.00! 😊👀 #rebates #freemoney #budgeting #savingmoney #cutbacks #easymoney #dontoverlookthesmallstuff https://www.instagram.com/p/B26n8soAFPU/?igshid=1h878cmaqty4a

[lifeonabudgetsblog]

Well...that is not what I was expecting to see. 😳 WAKE UP CALL. Just because you have a tight budget on paper doesn't mean you run a tight budget. Do you know where all your money is going? If you're like me and your expenses are running over...it means your money isn't going where it should be and that means you're not actually following your budget. It looks like this mid month check in showed me the importance of tracking and reconciling your expenses against your budget. EVERY. SINGLE. ONE. 🖊🗒💲 #ourfinancialjourney #transparency #realitycheck #midmonthcheckin #budgets #spending #expensetracking #money #reconciliation #lessons https://www.instagram.com/p/B2nWPXFgAZP/?igshid=1gc1cosmvgof5

[lifeonabudgetsblog]

What do you see here?... A. Two crappy bikes to take out to the trash. Or B. $$$$ If you answered A, you're like my husband. Yes, they are old. Yes, the blue ones back axel is busted and the green one is missing the pedals. Trash right? If you answered B, you're like me, (completely obsessed with selling items on facebook marketplace- give or take some of the obsession) 😏 Totally sellable items. So, who had the correct answer you ask?.......I DID! A gentleman is picking then up on Thursday and paying us $15. He has two pedals and is going to fix the back axel. Do not underestimate the items in your home that you may think are trash. Like they say, one (wo)man's trash is another (wo)man's treasure. #facebookmarketplace #sidehustles #extracash #sellyourstuff #doyoureallyneedit #budgeting #fianancialfreedom #debtpayoff #trashvstreasure https://www.instagram.com/p/B2jtzIBgjbv/?igshid=cunlff3jxjvq

[lifeonabudgetsblog]

Mind. Blown. 🤯 I bank with Member's 1st and I use their online banking. Today I discovered something that I never knew was possible (not sure if this is as astonishing to anyone else) but you can export your account transactions to a spreadsheet!!! Whaaaaattt?!!! Mid month check ins are going to be easyyyy!! * I pulled my transactions from the 1st of the month to the 15th of the month and exported them. * I sorted the data by column D (the amount) from smallest to largest which put all of the withdraws at the top. * Then I went through each and color coded based on whether the expense was budgeted or not- green for budgeted, pink for not budgeted. * I then sorted by color. Tomorrow I will total each for our mid month check in. Tomorrow I'll post a review of what I find....😳 #financialfreedom #financialjourney #midmonthcheckin #budgeting #expenses #onlinebanking #overspending #realitycheck #debtpayoff #keepyourselfincheck #keeptrackofspending #debt #money #reallife #adulting https://www.instagram.com/p/B2iJQ3wgI0y/?igshid=z26py2mrkwqg

[lifeonabudgetsblog]

This weekend my husband and I overspent...we ordered food Friday night and Sunday afternoon for a whopping total of $70, which ends up coming out of our savings so that we can stay on track with our credit repayment. 😫 Budgeting is a lot like dieting (it's actually the same concept and requires the same types of personal skills). You cutback, you overindulge and then you tear yourself apart for messing up. On our journey to financial freedom I know we are going to mess up. I also know we are going to run into expenses we weren't expecting. Am I going to spend the entire next day ripping myself apart for it? Crying about it because how could I be so weak? No. Not anymore. I'm going to give myself a pep talk and then I am going to look at our money and figure out where we are going to sacrifice to repay our savings. These things happen. Give yourself 30 seconds of negativity and then move on. Figure out the sacrifice. Work harder. Remember what you ended up sacrificing the next time you want to order El Rodeo for dinner and Duke's Riverside for lunch. 🌯🥪🥗 #mistakes #overindulging #notgoodforthebudget #notgoodforthediet #financialjourney #thingshappen #sacrifices #moveon #dontdwell #getbackontrack #budgeting #negativitydoesnothing https://www.instagram.com/p/B2fqBVDgUZx/?igshid=1vv0lv9fwgs2a

[lifeonabudgetsblog]

Tip of the day: Stick to your grocery budget. Anyone heard of instacart? I am absolutely in love. Not only is it super convenient but it helps me stay on track with the money I have budgeted. Right now I only use Aldi delivery, but they currently offer delivery from many stores and you can even shop at Sam's Club, BJs and Costco through instacart without a membership! For my Aldi deliveries I have favorited all of the items I need to be able to buy on a weekly or monthly basis. I go through them each week adding only what is needed from the items to my cart. If I am making a new recipe, I simply search for the item needed for the recipe and add it to my cart. You can keep track of your total spent and at the end you can adjust your order accordingly to make sure you stay under budget. Once you complete your order, it shows you who is shopping for it, allows you to communicate with that person the entire time and then let's you see the route as they drive to deliver your order. It allows you to schedule the day and time for delivery as soon as 1-2 hours after order placement. They also offer a program where you can pay $99 annually to skip the $3.99 delivery fee. Honestly, if you haven't tried it yet, you're welcome. I just introduced you to your new favorite budget friendly, time saving delivery service. 😄🍎🥦🥬🛒 #instacart #moneysaving #timesaving #budgetontrack #deliveryservice #groceryshopping #donthavetoleaveyourhouse #convenience https://www.instagram.com/p/B2XN4fqAirQ/?igshid=94ic6n3xl4z

[lifeonabudgetsblog]

Gratitude Challenge Day 4: What are you thankful for regarding your job? This one I had no trouble with. Not only does my job provide me with the money to keep a roof over our heads and food on our table, but I genuinely love my job. It provides me with a feeling of accomplishment as well as a place to grow and use my skill sets, but most of all it has blessed me with a truly amazing group of people. We are like family and I honestly wouldn't trade it for anything. 😊 @higherinfogroup #bestplacetowork #employment #workplace #workfamily #gratitudechallenge #alwaysbegrateful https://www.instagram.com/p/B2VNAeng3Az/?igshid=39u297selyu7

[lifeonabudgetsblog]

Afford Anything- What I've Learned from Interviewing 500 Millionaires- this morning's podcast on the way to work. My drive to and from work is anywhere from 20 to 45 minutes depending on whether I am dropping off or picking up my kids. For me, this is the perfect time for further educating myself through podcasts. My listening repituore includes podcasts about everything from finances to politics and even the occasional crime podcast. I am always looking for new podcasts to listen to so drop your favorites in the comments!! 😊👂🎧 #podcasts #alwayslearning #furthereducation #finance #workcommute #usingtimewisely https://www.instagram.com/p/B2RWyFxAyoQ/?igshid=16p1h61ulsg31

[lifeonabudgetsblog]

Gratitude Challenge Day 2: What skill are you grateful you have? It took me a bit to think of this answer. It is a lot harder than I thought it would be to attempt to compliment yourself on something you feel you do well. Once I finally thought of something, I realized it took me far too long to think of an answer and that made me a bit sad. As a mother, wife, manager, I am constantly trying to make sure everyone around me feels good about themselves, their work, their decisions, etc. I rarely take the time to say something positive to myself about my work, or my decisions. I chose dependability because I truly feel that if I say I am going to do something I do everything in my power to do it. I make sure I am always there and accessible for my children, my husband, my employees, my friends. It felt good to remind myself that I was blessed with skills that have brought me to where I am today and that I am allowed to acknowledge them occasionally. 😊 #positivethinking #thepowerofpositivity #skills #gratitudechallenge #learningaboutmyself #challengingmyself #thejourneyisnotjustaboutmoney #financialfreedom #rememberingtobegrateful #blessed #debtisnteverything #dontfocustoomuchonthenegative https://www.instagram.com/p/B2QI0U1Ail7/?igshid=xkgx1bqwtdht

[lifeonabudgetsblog]

Gratitude Challenge Day 1: Say thank you to someone when they least expect it. I chose to thank my mother in law. I know, text messages are the easy way out, but they are my favorite method of communication because I can write out my feelings. My husband and I could not be more blessed to have her in our life with the ability to care for Brynlee while we are at work. Knowing she is with her Nana all day is such a huge relief! 💕 #gratitudechallenge #thirtydaysofgratitude #rememberingtheimportantthings #familyiseverything #financialfreedom #thejourney #emotional https://www.instagram.com/p/B2NXyqtgvNU/?igshid=j72yu337d7dn

[lifeonabudgetsblog]

Today starts my 30 days of gratitude challenge! Throughout this journey it's been easy for me to allow myself to feel jealous. Jealous of the things others can buy, jealous of the debt others have already paid off, jealous of the financial place others are in, etc. This jealousy brings on many other emotions as well, guilt, sadness, anxiety. If I let my mind wander too far it's hard to bring myself back to the why and remember all that we already have. I expect gratitude to play a huge part in our journey and as I participate in this challenge for the next 30 days I expect to remind myself how blessed and lucky we really are in this life, regardless of our debts. #financialfreedom #financialfomo #jealousy #guilt #reminders #perspective #needvswants #debtpayoff #emotionaljourney #mindsetmatters #staydisciplined #rememberwhy https://www.instagram.com/p/B2Ml17qgNjS/?igshid=2lrhdtnl47s5

[lifeonabudgetsblog]

Part of budgeting has been realizing where every cent is going and what it is going towards. Recently I decided to stop buying paper plates. We used to buy a pack of paper plates every week with our groceries. Imagine having to pay $.04 every time you used a paper plate. That's $7.96 per month and $95.52 per year for my family. While that doesn't seem like much I can think of a million other ways I could use $95 instead of using it to avoid the 10 extra seconds it takes to wash a dish. 😏🍽 #perspective #cutbacks #savingpennies #environmentallyfriendly #financialfreedom #stayingaware #whereisyourmoneygoing https://www.instagram.com/p/B2KL6quAaYj/?igshid=858z36wjg09q